Getting out of debt can be tough, unless you have a plan.

Debt management isn’t a popular family topic but talking about it with your kids and loved ones can help them avoid a lifetime of financial woes. Here are a few of the basics:

First Things First – Focus on paying off high interest, non-deductible debt first.

Budget Crunch – List all income and fixed expenses such as house and car payments. Next, list variable expenses to see what can be reduced or eliminated.

Consolidate – Monthly payments can likely be lowered by consolidating debt through a home equity loan as the interest rate will be much lower.

Reach Out – Creditors will often reduce monthly payments if a debt repayment plan is arranged through a reputable credit counseling service.

Managing debt may seem like a daunting task but it can help avoid a financial crisis that could devastate a person’s credit rating and their ability to borrow money at attractive rates. Almost everyone feels the credit crunch at some point in their life but with a little planning, it can almost always be overcome.